Ahead of a possible "iRadio" debut at WWDC, Apple is now reported to be shifting its advertising strategy to take advantage of businesses looking to reach consumers through the company's Internet radio service.

According to people familiar with the change in advertising tactics, Apple has tasked iAd engineers and sales staff to support its much-anticipated music streaming service, dubbed "iRadio," which is rumored to be unveiled at the company's Worldwide Developers Conference on June 10, reports Bloomberg.

Sources said Apple CEO Tim Cook is searching for new ways to bring in advertising revenue after iAd failed to make a significant dent in the lucrative mobile ad market, which is currently dominated by Google. These people also claim Apple will slowly pull back from its role as a network serving up ads on mobile devices, instead refocusing its efforts on the as-yet-unreleased iRadio platform.

Leading the charge for iAd's new direction is Apple's senior vice president of Internet Software and Services Eddy Cue, and advertising chief Todd Teresi, who was hired away from Adobe last year.

The publication noted that iRadio is not likely to launch until later this year, when the next-generation iOS 7 is due for public consumption, though the service may make an appearance at WWDC if licensing deals can be wrapped up in time.

It was reported on Sunday that Apple inked an agreement with Warner Music Group for both music and publication rights. Previously, a deal was struck with Universal Music Group, but the world's second-largest label, Sony, is said to be at odds with Apple's proposed payment structure.

Originally Posted by AppleInsider
Sources said Apple CEO Tim Cook is searching for new ways to bring in advertising revenue after iAd failed to make a significant dent in the lucrative mobile ad market, which is currently dominated by Google. These people also claim Apple will slowly pull back from its role as a network serving up ads on mobile devices, instead refocusing its efforts on the as-yet-unreleased iRadio platform.

Why? iAds are the best ads available. This will be a turnoff more than anything.

Ahead of a possible "iRadio" debut at WWDC, Apple is now reported to be shifting its advertising strategy to take advantage of businesses looking to reach consumers through the company's Internet radio service.

According to people familiar with the change in advertising tactics, Apple has tasked iAd engineers and sales staff to support its much-anticipated music streaming service, dubbed "iRadio," which is rumored to be unveiled at the company's Worldwide Developers Conference on June 10, reports Bloomberg.

Sources said Apple CEO Tim Cook is searching for new ways to bring in advertising revenue after iAd failed to make a significant dent in the lucrative mobile ad market, which is currently dominated by Google. These people also claim Apple will slowly pull back from its role as a network serving up ads on mobile devices, instead refocusing its efforts on the as-yet-unreleased iRadio platform.

If true, this will lay the groundwork for ads on AppleTV. Ads on AppleTV... This could be significant. Cutting out the cable companies, cutting out the middlemen everywhere in the entertainment product to consumers chain.

Hm, just last week Cook was publicly stating (during the Q&A at D11) that they are only in the ad business to support developers. Putting iAds into an own iRadio app wouldn't do anything for developers. Plus, people listen to a radio stream, mainly run it in the background... what would visual ads achieve here? And why would people pay for a service with mandatory ads? Not convinced this rumor makes much sense.

Hm, just last week Cook was publicly stating (during the Q&A at D11) that they are only in the ad business to support developers. Putting iAds into an own iRadio app wouldn't do anything for developers. Plus, people listen to a radio stream, mainly run it in the background... what would visual ads achieve here? And why would people pay for a service with mandatory ads? Not convinced this rumor makes much sense.

That was true last week just as its true today and will be true until this rumoured iRadio is launched. The ads would be audible, not visual, which means they are unique to what they have now. How they price it or arrange it could be done to help developers. For instance, Apple could still pay developers if iRadio is an API that connects to an app and every time an ad is then heard. Or they could funnel the profits from it to developers that use iAd to make the in-app ads more profitable for developers. Or (and I think this is most likely) they're doing it to pay for the licensing costs of streaming music, plus using it to strengthen the support iAd has which will hopefully increase support for in-app ads.

If true, this will lay the groundwork for ads on AppleTV. Ads on AppleTV... This is very significant. Cutting out the cable companies, cutting out the middlemen everywhere in the entertainment product to consumers chain.

Without the subscription TV Show deal, iTV may have trouble existing. The whole point with a subscription is to guarantee viewers they get all the shows, and it's the best way to subsidise the cost of an actual TV - which in turn enables Apple to provide a complete end-to-end solution where they can make an amazing experience thanks to complete control. Ads would perhaps help this subsidisation strategy, but I think the best solution is a monthly contract, giving the people the content they want and no ads to interfere. That would be awesome. And to those who say they don't want a contract? Netflix, anyone? And don't say you can quit Netflix whenever you want, because no one does that less than once a year, really. Of course Apple could also sell the TV off-contract as an option, which would make everyone content.